Online Gambling Giants Thrive in the U.S. With Practices Dropped in Britain
The U.S. online gambling market is booming, driven by European giants Flutter, the operator of FanDuel, and Entain, co-owner of BetMGM.
However, these companies are employing strategies in America that they have abandoned in Britain, where stricter regulations and mounting concerns about gambling harm have reshaped the industry.
Flutter’s Troubling Cases
Flutter’s past highlights its challenges with responsible gambling. In 2018, the company’s UK arm was fined $2.8 million for failing to stop a man embezzling funds to fuel his gambling addiction. Chief Executive Peter Jackson admitted they had a duty to intervene when customers showed signs of problem gambling.
In the U.S., a similar case unfolded. Amit Patel, a finance manager at the Jacksonville Jaguars, embezzled $20 million to gamble with FanDuel between 2019 and 2023. Despite Patel’s modest $90,000 salary, FanDuel assigned him a VIP representative, encouraging further betting until late 2022. Patel’s attorney claimed the company failed to act as his losses mounted.
Divergent Approaches Across Markets
Online gambling in the United States operates under a patchwork of state-level laws, as federal regulations provide limited oversight.
As this website shows, legality largely depends on individual states, with many having embraced online sports betting following the 2018 Supreme Court decision that struck down the Professional and Amateur Sports Protection Act (PASPA), allowing states to regulate sports betting. Online casino gambling, however, is less widespread, with only a handful of states, such as New Jersey, Pennsylvania, and Michigan, permitting it.
States like Nevada focus on online poker rather than full casino offerings. While online gambling is legal in some jurisdictions, it remains prohibited in others, creating a fragmented legal landscape. Federal laws, such as the Unlawful Internet Gambling Enforcement Act (UIGEA) of 2006, primarily target financial institutions, prohibiting them from processing payments for illegal online gambling, but do not directly criminalize individual players. This decentralised approach leaves room for significant variations in online gambling regulation nationwide.
In Britain, both Flutter and Entain have implemented protective measures in response to gambling-related harm. These include curbing VIP programs, limiting bets for younger gamblers, and monitoring customers’ affordability.
In the U.K., Flutter caps online slot bets at £10 ($13) and applies deposit limits for customers under 25. Conversely, FanDuel allows $800 spins in the U.S. without similar age-based restrictions. Critics argue such practices heighten the risk of harm.
Regulatory Gaps in the U.S.
While some U.S. states have introduced advertising restrictions or discussed affordability measures, widespread reforms still need to be made. Analysts suggest lawmakers are more focused on the tax revenue generated by the rapidly growing industry.
Congressman Paul Tonko has proposed a bill requiring gambling operators to assess affordability and ban credit card deposits, but gambling companies oppose such measures.
The Role of VIP Programs
VIP programs, a source of controversy in Britain, remain a cornerstone of U.S. operations. In Britain, operators admitted these programs were too aggressive, incentivizing account managers to drive revenue.
VIP managers often target high-spending clients, encouraging them to wager more and “reactivating” those who stop gambling. While some managers claim to monitor signs of problem gambling, the emphasis on revenue growth raises concerns about exploitation.
Young Gamblers in the Crosshairs
Under-25s, a group Flutter acknowledges as vulnerable in Britain, face fewer protections in the U.S. While Flutter limits young bettors’ deposits in the U.K. and Ireland, no such measures exist in its American operations.
Instead, U.S. marketing efforts, including collaborations with influencers, target this demographic.
Industry Expansion
The legalization of sports betting in the U.S. after a 2018 Supreme Court ruling has fueled explosive growth.
Gross gaming revenue across sports and online casinos reached $16.9 billion in 2023, doubling from two years earlier.
Companies like Flutter and Entain leverage their U.K. expertise to capture legal gambling market share, employing strategies such as parlay bets, which offer higher payouts but lower odds of winning for gamblers.
Celebrity endorsements also play a significant role. FanDuel partners with NFL star Rob Gronkowski, while BetMGM features actor Jamie Fox